All Forum Posts by: Kenneth Williams

I’m interested in learning more about your guys experience. I recently learned I’m going to on the top of the list. Any recommendations on zipcodes to choose and how to decide which property? Also how accurate is the cash flow to the examples on their website? Any specific bank I should use to get preapproval?

Cash flow is probably about 1/2 of what they advertise. You really need to run your own numbers. Lately (as in the past 2 years or so), cash flow numbers are quite slim. I keep getting emails from them daily and am looking for an excuse to pull the trigger, but keep finding the deals don't pencil.

As for zipcodes, check out the Investor's Guide to Memphis Real Estate podcast (presented by Crestcore Realty). They do an annual show on zipcodes which is pretty spot on. About all they're good for in my opinion - I've reached out to Dean multiple times and crickets. One time he put me in touch with another person on his team who didn't listen at all to what I was looking for. Ended up unsubscribing from their list.

Example MSHB home that got emailed to me today in 38118:

Purchase Price: $199,300
Rent: $1,575/month

4BR / 2BA, 1,800+ sq ft. A bit larger for a rental. Probably towards the top end of their purchase price and rent range.

They advertise cash flow as $517/month. After entering in 8% PM fee, estimated insurance premium, etc., WITHOUT ANY OTHER MAINTENANCE/REPAIRS/VACANCY, I get about $283/month cash flow (that's on a 30-year fixed, 6.50% rate, 25% down). Once I put in 8% vacancy (which I also use to cover their $200 annual lease renewal fee, turnover costs, etc.), 5% maintenance, 5% cap-ex, that brings the cash flow to breakeven. $0.

After using PVA website for city and county taxes based on the purchase price they're charging the investor and inputting the likely future property tax figure based on the new (higher) purchase price, this brings the monthly cash flow to -$153/month.

So, put almost $50K down + closing costs to take on $150K debt and lose $150/month. Sign me up!!! lol

Not to mention, I have a property about 3 blocks over from this one that I bought for $84,000 back in the day that rents for $1,335/month on a 3.75% (30-year fixed) mortgage. I like the cash flow on this one a lot better.

Man, I'm sorry that you have had this experience. Have you thought about buying properties that need rehabbing and turning that into a rental. I think that may be the best route to go right now. There are a few off market properties that I have been able to find for my clients and that seems to work better for them.

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Little Rock, Arkansas

Quote from @Tibor T.:

Hi everyone,

I’m brand new to real estate and to this forum. I live in Switzerland and recently started researching U.S. real estate - specifically fix and flip - as a way to build capital and eventually transition into buy and hold for passive income.

I’ve searched the forum for similar situations but haven’t found anything that quite fits my setup, so here I am with my first post.

Since I’m not based in the U.S. and don’t have credit there, I’d be working with my own equity in a more affordable market - possibly Memphis, TN - but for now, my main question isn’t about location.

What I’d really like to know is:

Can fix and flip work remotely if I build a strong, reliable team on the ground?
Or is it essential to be there in person for every project - even in the long term?

I understand that flipping is a real job, not a passive hustle. I’m prepared to invest time and travel, especially in the beginning - but I also have a full-time job and can’t fly out for every project.

I’m also unsure whether foreign investors are welcome in the U.S. It’s important to me not to drive up property prices and to ensure that young families can still afford homes. We’re already facing this issue in Switzerland, and I’d like to avoid contributing to the same problem in the U.S.

Any thoughts, experiences, or honest feedback would be greatly appreciated. I’m just at the beginning of this journey and eager to find out whether this path is realistic, or just a daydream.

Thanks so much!

Wow, wow, wow! We need more investors like you out here! I’m a realtor based in Memphis, and let me tell you. You can absolutely do this!

The most important thing, especially in a market like Memphis, is having strong comps. Memphis is very much a street-by-street market, not one where you can just go by zip codes.

You’ll probably want to be pretty hands-on with your first few deals, but over time, you’ll start to develop an instinct for it. Eventually, you’ll just plug the numbers into your calculator and instantly know whether a deal makes sense.

I know you’re just getting started, and there are so many great cities to invest in across the country, but no matter where you decide to invest, keep that mindset. You can give people an affordable place they can call home.

If you ever want to talk more about the Memphis market, I’m here. I'll shoot you over my guide and you just reach out if you have questions.

0 Votes

Memphis, Tennessee

Quote from @Krystan Menz:

@Jaycee Greene be completely honest, I am just starting the process and gathering information. Don't know a lot about S8 housing other than that it's GOVT-assisted. Our goal is to have a portfolio mix of cash flow and appreciating assets. Also looking in Memphis and KC, along with our home area (Maine). But inventory and prices here are ridiculous.

Hey @Krystan Menz I'm a realtor in Memphis. I know you're just exploring but I would love to have a conversation and show you what we have been able to accomplish for our local and out of state clients. Just let me know when you have time.

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Saint Louis, Missouri

Have you looked into Memphis?

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Fort Lauderdale, Florida

Hey Josh,

Yeah, I can totally see why that preapproval feels a bit low, especially with your strong financials—$100k income, $100k cash, low student loans, and a 780 credit score. On paper, you’re looking solid.

A few things could be going on:

1. DTI (Debt-to-Income Ratio)
Even with low debt, lenders have their own limits on how much house you can afford based on your income. Sometimes they’re just conservative with it.

2. FHA Limits Might Be a Factor
FHA loans have specific limits that vary by county. In most Midwest cities, you're probably under the cap for a duplex, but it's still something to double-check.

3. Rental Income Isn’t Always Counted Fully
Even if you’re planning to house hack, some lenders only count 75% of the projected rent—or not at all—especially if you’ve never been a landlord before. It depends on the lender.

4. Not All Lenders Are Created Equal
Some banks are just stricter than others. I’ve seen clients get totally different preapprovals from two places within the same week.

What I'd Do:

Shop around—talk to a few lenders, including ones that know how to work with house hackers.
Ask how they handle future rental income.
Look at both FHA and conventional options, just to compare.

You’re definitely not crazy for asking—sometimes it’s just about finding the lender that knows how to make your numbers work. I got a guy that may be able to help you. Just message me and I'll send over his information.

Hope that helps!

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Congratulations on getting the triplex and it's very smart to move into one of the units. You definitely want to present yourself as the property manager. I would do this so that there is some distance between you and the tenants. Also, keep everything as separate as possible. I have a separate bank account and credit just for my investment property. It makes things very easy when tax time comes around. Hope this helped. If you need anything feel free to message me anytime!

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Philadelphia, Pennsylvania

Wow that deal looks good! Keep up the good work!

1 Vote

What cities are looking into?

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Fort Lauderdale, Florida

Are you looking into out of state investing or would you like to stay in Tampa?

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Tampa, Florida

Hey Ying!

Welcome to the BiggerPockets family and congrats on everything you’ve built so far!

I'm a realtor, investor and property manager here in Memphis and I totally get what you're saying about how tough it can be navigating unfamiliar markets especially when you're trying to balance cash flow, appreciation, and different strategies like BRRRR. I actually bought my investment property using this strategy. I also want you to know upfront. Every market has its quirks, and Memphis is no exception lol.

Here, success really depends on your approach. Are you looking for turnkey properties with immediate cash flow? Value-add plays that need some work? Or long-term holds in appreciating areas? Memphis can check a lot of boxes depending on your goals, but it helps to have someone on the ground who understands the neighborhoods and how investor-friendly certain pockets are.

If you ever want to chat more about what investing in Memphis looks like or need help figuring out if it aligns with your bigger strategy, feel free to PM me. I’d be happy to share what I know and help however I can!

0 Votes

Phoenix, Arizona

All Forum Posts by: Kenneth Williams

Kenneth Williams has started 2 posts and replied 38 times.

Post: Mid South Home Buyers - Has anyone ever done business with this company recently?

Post: Can Fix & Flip Work Remotely From Abroad?

Post: Areas in STL to invest

Post: Looking to get back in the game

Post: Loan Pre-Approval for House Hacking Seems low?

Post: House Hackers: Did You Let Your Tenants Know You Were the Owner?

Post: Buy and Hold for parents

Post: Looking to get back in the game

Post: Getting started with my first investment

Post: What advice can you share for a beginner exploring both local and out-of-state